Business Segments

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Business Segments

16. Business Segments

Effective as of the third quarter of 2023, we revised our reportable segments to align with certain changes in how our Chief Operating Decision Maker (“CODM”) manages and allocates resources to our business as a result of the Ulterra acquisition and NexTier merger. Accordingly, we now have the following reportable business segments: (i) drilling services, (ii) completions services, and (iii) drilling products.

Drilling Services — represents our contract drilling, directional drilling, oilfield technology and electrical controls and automation businesses.

Completion Services — represents the combination of our well completion business, which includes hydraulic fracturing, wireline and pumping, completion support, cementing and our legacy pressure pumping business.

Drilling Products — represents our manufacturing and distribution of drill bits business, which was acquired with our acquisition of Ulterra on August 14, 2023.

This segment structure reflects the financial information and reports used by management, specifically including our CODM, to make decisions regarding the businesses, including performance evaluation and resource allocation decisions. As a result of the revised reportable segment structure, we have restated the corresponding items of segment information for all periods presented.

The following tables summarize selected financial information relating to our business segments (in thousands):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2023			2022			2023			2022
Revenues:
Drilling Services	$	503,767		$	428,242		$	1,496,520		$	1,109,234
Completion Services		459,574			287,664			1,003,083			715,630
Drilling Products		46,570			—			46,570			—
Other(1)		17,501			22,079			59,393			60,836
Elimination of intercompany revenues - Drilling Services (2)		(14,992	)		(10,217	)		(40,359	)		(25,905	)
Elimination of intercompany revenues - Other (2)		(968	)		(265	)		(3,068	)		(679	)
Total revenues	$	1,011,452		$	727,503		$	2,562,139		$	1,859,116
Income (loss) before income taxes:
Drilling Services	$	114,737		$	46,530		$	329,322		$	68,629
Completion Services		162			48,949			69,898			75,461
Drilling Products		(6,240	)		—			(6,240	)		—
Other		435			3,983			1,811			10,297
Corporate		(99,390	)		(23,117	)		(154,542	)		(60,161	)
Interest income		2,131			58			4,583			87
Interest expense		(15,625	)		(10,975	)		(34,189	)		(32,198	)
Other		(618	)		(1,774	)		3,191			(2,644	)
Income (loss) before income taxes	$	(4,408	)	$	63,654		$	213,834		$	59,471
Depreciation, depletion, amortization and impairment:
Drilling Services	$	90,668		$	88,199		$	272,361		$	262,955
Completion Services		83,338			24,746			135,339			73,244
Drilling Products		17,075			—			17,075			—
Other		5,319			7,920			21,946			20,495
Corporate		1,235			1,285			5,908			3,947
Total depreciation, depletion, amortization and impairment	$	197,635		$	122,150		$	452,629		$	360,641
Capital expenditures:
Drilling Services	$	89,242		$	72,683		$	261,155		$	181,754
Completion Services		56,464			46,653			107,529			114,669
Drilling Products		7,940			—			7,940			—
Other		5,972			6,457			18,387			19,654
Corporate		804			562			15,406			1,476
Total capital expenditures	$	160,422		$	126,355		$	410,417		$	317,553

	September 30, 2023		December 31, 2022
Identifiable assets:
Drilling Services	$	2,345,942	$	2,348,177
Completion Services		3,940,742		541,975
Drilling Products		1,038,772		—
Other		57,782		64,018
Corporate (3)		37,336		189,653
Total assets	$	7,420,574	$	3,143,823

(1)Other includes our oilfield rentals business and oil and natural gas working interests.

(2)Intercompany revenues consist of revenues from drilling services provided to our other operations, and revenues from other operations for services provided to drilling services, completion services and within other operations. These revenues are generally based on estimated external selling prices and are eliminated during consolidation.

(3)Corporate assets primarily include cash on hand and certain property and equipment.